The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, has ratified a decision to block a proposed 15 percent reduction in gas rates, citing obligations under a three-year International Monetary Fund (IMF) loan program. The move comes despite falling international oil prices, which had prompted calls for lowering domestic gas tariffs to provide relief to consumers.
Officials explained that the decision aligns with Pakistan’s commitments to the IMF, aimed at ensuring fiscal stability and maintaining energy sector reforms. Reducing gas rates could have strained government revenue and affected the financial targets outlined under the IMF agreement. Finance Minister Aurangzeb emphasized that while consumer relief is important, fulfilling international loan obligations is critical to sustain macroeconomic stability and secure further funding.
The proposed reduction had raised expectations among households and businesses, who had been seeking relief from rising utility costs amid inflationary pressures. Analysts note that while the decision may disappoint some consumers, it reflects the government’s broader strategy to manage fiscal discipline and maintain investor confidence.
Energy experts have urged the government to explore alternative measures, such as targeted subsidies or support programs, to mitigate the impact of high energy costs on vulnerable populations without jeopardizing Pakistan’s commitments under the IMF program.
